SME shares continue to perform well

The sector has enjoyed better share price results than the mid and large sectors throughout the year, according to the Smaller Companies Briefing report released by analysts Teather & Greenwood.

According to the stocbrokers, the FTSE Small Cap Index (ex investment trusts) has risen by 22% in the last year as has the FTSE Small Cap – while the FT 100 has fallen by 7.5%.

This has partially come about as a result of suitable economic conditions for SMEs – namely the interest rate remaining at 6% for eight months running.

The report said: ‘Smaller companies have been the driving force of the new economy. Their ability to adapt better to fast-changing business environments has made them more attractive than their larger counterparts.

It adds: ‘The most successful technology companies are an example of this.’

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